Washington Trust Reports First Quarter 2026 Results

Washington Trust Reports First Quarter 2026 Results WESTERLY, R.I., April 20, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH; "Washington Trust" or the "Corporation"), today reported first quarter 2026 net income of $12.6 million, or $0.66 per diluted share, compared to $16.0 million, or $0.83 per diluted share, for the preceding quarter. Compared to the first quarter of 2025, net income was up by $421 thousand, or $0.03 per diluted share, on a GAAP basis, and was up by $838 thousand, or $0.05 per diluted share, on an adjusted (non-GAAP) basis.

"Washington Trust delivered solid first quarter 2026 results, led by an increase in net interest margin, which reflects the strength of our core banking business and continued benefits from the December 2024 balance sheet repositioning transactions," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "Our balance sheet remains strong, and as we move through 2026, Washington Trust is focused on delivering long‑term shareholder value while providing customers with personalized service, local decision‑making, and a comprehensive suite of financial products and services."

FIRST QUARTER HIGHLIGHTS (Q1 2026 vs. Q4 2025, unless otherwise noted):

RESULTS OF OPERATIONS (Q1 2026 vs. Q4 2025, unless otherwise noted):

Net Interest Income

Net interest income was down by $223 thousand, or 1%, and as noted above NIM was up by 7 basis points. Compared to the first quarter of 2025, net interest income was up by $4.1 million, or 11%, and NIM was up by 34 basis points.

Noninterest Income

Noninterest income was down by $1.2 million, or 6%. Adjusted noninterest income (non-GAAP) was up by $1.7 million, or 11%, from the first quarter of 2025.

Noninterest Expense

Noninterest expense was down by $218 thousand, or 1%. Adjusted noninterest expense (non-GAAP) was up by $2.0 million, or 6%, from the first quarter of 2025.

Income Tax

Income tax expense was down by $1.2 million. The effective tax rate was 21.6%, compared to 22.7%. The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.

FINANCIAL CONDITION (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):

Investment Securities

The securities portfolio totaled $912 million, down by $28 million, or 3%, and remained at 14% of total assets.

Loans

Total loans amounted to $5.0 billion, down by $120 million, or 2%.

Deposits and Borrowings

Total deposits amounted to $5.2 billion, and were down by $105 million, or 2%. Compared to March 31, 2025, deposits were up by $124 million, or 2%. In-market deposits, which exclude wholesale brokered deposits, decreased by $105 million, or 2%. Compared to March 31, 2025, in-market deposits were up by $151 million, or 3%.

FHLB advances totaled $576 million, and were down by $50 million, or 8%. Compared to March 31, 2025, FHLB advances were down by $274 million, or 32%.

Contingent liquidity amounted to $2.0 billion at March 31, 2026 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Capital and Dividends

Total shareholders' equity was $546.8 million, up by $3.2 million, or 1%.

ASSET QUALITY (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):

Nonaccrual loans were $40.4 million, or 0.81% of total loans, up from $12.9 million, or 0.25%. The increase was largely due to two commercial real estate office loans that were placed on nonaccrual status.

Past due loans were $16.4 million, or 0.33% of total loans, up from $11.4 million, or 0.22%, and included $7.0 million of commercial loans and $9.4 million of residential and consumer loans.

The provision for credit losses totaled $4.0 million in the first quarter, compared to $600 thousand in the prior quarter. The first quarter provision largely reflected an increase in specific reserves, partially offset by a decline in loan portfolio balances. The Corporation recorded $10 thousand of net charge-offs in the first quarter, compared to net recoveries of $160 thousand in the preceding quarter.

The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.82% of total loans, compared to $37.2 million, or 0.73%.

Conference Call

Washington Trust will host a conference call to discuss its first quarter results, business highlights, and outlook on April 21, 2026, at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 948138. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 238648. The audio replay will be available through May 5, 2026. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through June 30, 2026.

Background

Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts. The Corporation's common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation's website at https://ir.washtrust.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements." We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following:

In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Assets:

Cash and due from banks

$27,781

$29,481

$33,394

(1,700)

(5.8 %)

($5,613)

(16.8 %)

Interest-earning deposits with correspondent banks

60,090

61,375

82,804

(1,285)

(2.1)

(22,714)

(27.4)

Short-term investments

12,313

12,878

4,041

(565)

(4.4)

8,272

204.7

Mortgage loans held for sale, at fair value

32,127

35,833

21,953

(3,706)

(10.3)

10,174

46.3

Available for sale debt securities, at fair value

911,958

940,342

917,545

(28,384)

(3.0)

(5,587)

(0.6)

Federal Home Loan Bank stock, at cost

28,273

29,473

38,899

(1,200)

(4.1)

(10,626)

(27.3)

Loans:

Total loans

5,014,885

5,134,388

5,096,210

(119,503)

(2.3)

(81,325)

(1.6)

Less: allowance for credit losses on loans

41,126

37,236

41,056

3,890

10.4

0.2

Net loans

4,973,759

5,097,152

5,055,154

(123,393)

(2.4)

(81,395)

(1.6)

Premises and equipment, net

25,900

25,402

26,068

498

2.0

(168)

(0.6)

Operating lease right-of-use assets

35,855

35,904

36,048

(49)

(0.1)

(193)

(0.5)

Investment in bank-owned life insurance

116,010

115,126

107,546

884

0.8

8,464

7.9

Goodwill

63,909

—

Identifiable intangible assets, net

4,148

4,303

2,682

(155)

(3.6)

1,466

54.7

Other assets

167,073

170,516

195,972

(3,443)

(2.0)

(28,899)

(14.7)

Total assets

$6,459,196

$6,621,694

$6,586,015

($162,498)

(2.5 %)

($126,819)

(1.9 %)

Liabilities:

Deposits:

Noninterest-bearing deposits

$585,415

$595,092

$625,590

($9,677)

(1.6 %)

($40,175)

(6.4 %)

Interest-bearing deposits

4,579,218

4,674,898

4,414,991

(95,680)

(2.0)

164,227

3.7

Total deposits

5,164,633

5,269,990

5,040,581

(105,357)

(2.0)

124,052

2.5

Federal Home Loan Bank advances

576,000

626,000

850,000

(50,000)

(8.0)

(274,000)

(32.2)

Junior subordinated debentures

22,681

—

Operating lease liabilities

38,724

38,726

38,716

(2)

—

Other liabilities

110,385

120,713

112,357

(10,328)

(8.6)

(1,972)

(1.8)

Total liabilities

5,912,423

6,078,110

6,064,335

(165,687)

(2.7)

(151,912)

(2.5)

Shareholders' Equity:

Common stock

1,223

—

Paid-in capital

198,654

198,323

197,570

331

0.2

1,084

0.5

Retained earnings

444,508

442,741

435,233

1,767

0.4

9,275

2.1

Accumulated other comprehensive loss

(78,435)

(79,309)

(99,179)

874

(1.1)

20,744

20.9

Treasury stock, at cost

(19,177)

(19,394)

(13,167)

217

(1.1)

(6,010)

(45.6)

Total shareholders' equity

546,773

543,584

521,680

3,189

0.6

25,093

4.8

Total liabilities and shareholders' equity

$6,459,196

$6,621,694

$6,586,015

($162,498)

(2.5 %)

($126,819)

(1.9 %)

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars and shares in thousands, except per share amounts)

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Q1 2026

Q4 2025

Q1 2025

Interest income:

Interest and fees on loans

$64,338

$67,040

$66,656

($2,702)

(4.0 %)

($2,318)

(3.5 %)

Interest on mortgage loans held for sale

375

606

958

(231)

(38.1)

(583)

(60.9)

Taxable interest on debt securities

8,768

9,100

8,827

(332)

(3.6)

(59)

(0.7)

Nontaxable interest on debt securities

(1)

(12.5)

—

Dividends on Federal Home Loan Bank stock

585

792

1,022

(207)

(26.1)

(437)

(42.8)

Other interest income

909

1,291

1,993

(382)

(29.6)

(1,084)

(54.4)

Total interest and dividend income

74,982

78,837

79,463

(3,855)

(4.9)

(4,481)

(5.6)

Interest expense:

Deposits

27,370

30,060

31,748

(2,690)

(8.9)

(4,378)

(13.8)

Federal Home Loan Bank advances

6,777

7,696

10,946

(919)

(11.9)

(4,169)

(38.1)

Junior subordinated debentures

310

333

347

(23)

(6.9)

(37)

(10.7)

Total interest expense

34,457

38,089

43,041

(3,632)

(9.5)

(8,584)

(19.9)

Net interest income

40,525

40,748

36,422

(223)

(0.5)

4,103

11.3

Provision for credit losses

4,000

600

1,200

3,400

566.7

2,800

233.3

Net interest income after provision for credit losses

36,525

40,148

35,222

(3,623)

(9.0)

1,303

3.7

Noninterest income:

Wealth management revenues

10,647

10,852

9,891

(205)

(1.9)

756

7.6

Mortgage banking revenues

3,045

3,250

2,304

(205)

(6.3)

741

32.2

Card interchange fees

1,385

1,217

1,509

168

13.8

(124)

(8.2)

Service charges on deposit accounts

785

843

744

(58)

(6.9)

5.5

Loan related derivative income

227

1,081

101

(854)

(79.0)

126

124.8

Income from bank-owned life insurance

885

886

769

(1)

(0.1)

116

15.1

Gain on sale of bank-owned properties, net

—

6,994

—

(6,994)

(100.0)

Other income

329

374

331

(45)

(12.0)

(2)

(0.6)

Total noninterest income

17,303

18,503

22,643

(1,200)

(6.5)

(5,340)

(23.6)

Noninterest expense:

Salaries and employee benefits

24,340

23,647

22,422

693

2.9

1,918

8.6

Outsourced services

4,383

4,067

4,346

316

7.8

0.9

Net occupancy

2,890

2,642

2,741

248

9.4

149

5.4

Equipment

903

852

891

6.0

1.3

Legal, audit, and professional fees

936

667

750

269

40.3

186

24.8

FDIC deposit insurance costs

935

1,028

1,262

(93)

(9.0)

(327)

(25.9)

Advertising and promotion

547

1,029

410

(482)

(46.8)

137

33.4

Amortization of intangibles

155

204

—

(49)

(24.0)

Pension plan settlement charge

—

6,436

—

(6,436)

(100.0)

Other expenses

2,676

3,896

2,734

(1,220)

(31.3)

(58)

(2.1)

Total noninterest expense

37,765

37,983

42,196

(218)

(0.6)

(4,431)

(10.5)

Income before income taxes

16,063

20,668

15,669

(4,605)

(22.3)

394

2.5

Income tax expense

3,463

4,694

3,490

(1,231)

(26.2)

(27)

(0.8)

Net income

$12,600

$15,974

$12,179

($3,374)

(21.1 %)

$421

3.5 %

Weighted avg common shares outstanding - basic

19,039

19,034

19,276

Weighted avg common shares outstanding - diluted

19,173

19,159

19,370

Per share information:

Basic earnings per common share

$0.66

$0.84

$0.63

($0.18)

(21.4 %)

$0.03

4.8 %

Diluted earnings per common share

$0.66

$0.83

$0.63

($0.17)

(20.5 %)

$0.03

4.8 %

Cash dividends declared

$0.56

$—

— %

$—

— %

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars and shares in thousands, except per share amounts)

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Share and Equity Related Data:

Book value per share

$28.72

$28.56

$27.06

$0.16

0.6 %

$1.66

6.1 %

Tangible book value per share (non-GAAP) (1)

$25.14

$24.97

$23.61

$0.17

0.7 %

$1.53

6.5 %

Market value per share

$33.46

$29.55

$30.86

$3.91

13.2 %

$2.60

8.4 %

Shares issued at end of period

19,562

— shs

— %

— shs

— %

Shares outstanding at end of period

19,041

19,035

19,276

6 shs

— %

(235) shs

(1.2 %)

Capital Ratios (2):

Tier 1 risk-based capital

12.46 %

12.14 %

12.23 %

32 bps

23 bps

Total risk-based capital

13.38 %

12.95 %

13.13 %

43 bps

25 bps

Tier 1 leverage ratio

8.80 %

8.65 %

8.45 %

15 bps

35 bps

Common equity tier 1

11.99 %

11.68 %

11.76 %

31 bps

23 bps

Balance Sheet Ratios:

Equity to assets

8.47 %

8.21 %

7.92 %

26 bps

55 bps

Tangible equity to tangible assets (non-GAAP) (1)

7.49 %

7.25 %

6.98 %

24 bps

51 bps

Loans to deposits (3)

96.9 %

97.4 %

100.7 %

(50) bps

(380) bps

Q1 2026

Q4 2025

Q1 2025

vs.

Q4 2025

(bps)

vs.

Q1 2025

(bps)

Performance Ratios (4):

Net interest margin (5)

2.63 %

2.56 %

2.29 %

Return on average assets (6)

0.78 %

0.95 %

0.73 %

(17)

Adjusted return on average assets (non-GAAP) (1)

0.78 %

0.95 %

0.71 %

(17)

Return on average tangible assets (non-GAAP) (1)

0.79 %

0.96 %

0.71 %

(17)

Return on average equity (7)

9.23 %

11.70 %

9.63 %

(247)

(40)

Adjusted return on average equity (non-GAAP) (1)

9.23 %

11.70 %

9.30 %

(247)

(7)

Return on average tangible equity (non-GAAP) (1)

10.53 %

13.39 %

10.69 %

(286)

(16)

Efficiency ratio (8)

65.3 %

64.1 %

71.4 %

120

(610)

Adjusted efficiency ratio (non-GAAP) (1)

65.3 %

64.1 %

68.7 %

120

(340)

(1)

See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.

(2)

Estimated for Mar 31, 2026 and actuals for prior periods.

(3)

Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.

(4)

Annualized based on the actual number of days in the period.

(5)

Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.

(6)

Net income divided by average assets.

(7)

Net income divided by average equity.

(8)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars in thousands)

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Q1 2026

Q4 2025

Q1 2025

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$10,580

$10,749

$9,769

($169)

(1.6 %)

$811

8.3 %

Transaction-based revenues

103

122

(36)

(35.0)

(55)

(45.1)

Total wealth management revenues

$10,647

$10,852

$9,891

($205)

(1.9 %)

$756

7.6 %

Assets Under Administration (AUA):

Spot balance at end of period (1)

$7,495,602

$7,777,250

$6,818,390

($281,648)

(3.6 %)

$677,212

9.9 %

Percentage of AUA that are managed assets

91 %

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2)

$2,370

$3,424

$1,575

($1,054)

(30.8 %)

$795

50.5 %

Changes in fair value, net (3)

164

(610)

133

774

126.9

23.3

Loan servicing fee income, net (4)

511

436

596

17.2

(85)

(14.3)

Total mortgage banking revenues

$3,045

$3,250

$2,304

($205)

(6.3 %)

$741

32.2 %

Residential Mortgage Loan Originations:

Originations for retention in portfolio (5)

$36,813

$46,912

$27,662

($10,099)

(21.5 %)

$9,151

33.1 %

Originations for sale to secondary market (6)

118,351

162,410

75,519

(44,059)

(27.1)

42,832

56.7

Total mortgage loan originations

$155,164

$209,322

$103,181

($54,158)

(25.9 %)

$51,983

50.4 %

Percentage of originations for sale to total

mortgage loan originations

76 %

78 %

73 %

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$4,670

$7,461

$16,819

($2,791)

(37.4 %)

($12,149)

(72.2 %)

Sold with servicing rights released (6)

116,853

150,507

58,680

(33,654)

(22.4)

58,173

99.1

Total mortgage loans sold

$121,523

$157,968

$75,499

($36,445)

(23.1 %)

$46,024

61.0 %

(1)

Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.

(2)

Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.

(3)

Represents fair value changes on mortgage loans held for sale and forward loan commitments.

(4)

Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(5)

Includes the full commitment amount of homeowner construction loans.

(6)

Includes brokered loans (loans originated for others).

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Loans:

Commercial real estate (1)

$2,084,804

$2,183,985

$2,134,107

($99,181)

(4.5 %)

($49,303)

(2.3 %)

Commercial & industrial

568,177

564,082

535,030

4,095

0.7

33,147

6.2

Total commercial

2,652,981

2,748,067

2,669,137

(95,086)

(3.5)

(16,156)

(0.6)

Residential real estate (2)

2,029,092

2,050,399

2,113,307

(21,307)

(1.0)

(84,215)

(4.0)

Home equity

316,353

318,862

296,563

(2,509)

(0.8)

19,790

6.7

Other

16,459

17,060

17,203

(601)

(3.5)

(744)

(4.3)

Total consumer

332,812

335,922

313,766

(3,110)

(0.9)

19,046

6.1

Total loans

$5,014,885

$5,134,388

$5,096,210

($119,503)

(2.3 %)

($81,325)

(1.6 %)

(1)

Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.

(2)

Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

Mar 31, 2026

Dec 31, 2025

Balance Change

Balance

% of Total

Balance

% of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family

$639,976

31 %

$667,388

31 %

($27,412)

(4.1 %)

Retail

407,029

436,961

(29,932)

(6.9)

Industrial and warehouse

339,839

380,403

(40,564)

(10.7)

Hospitality

242,229

230,549

11,680

5.1

Office

231,007

237,706

(6,699)

(2.8)

Healthcare Facility

156,138

156,871

(733)

(0.5)

Mixed-use

27,459

26,440

1,019

3.9

Other

41,127

47,667

(6,540)

(13.7)

Total commercial real estate loans

$2,084,804

100 %

$2,183,985

100 %

($99,181)

(4.5 %)

Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance

$149,292

26 %

$150,061

27 %

($769)

(0.5 %)

Retail trade

62,866

48,289

14,577

30.2

Transportation and warehousing

55,864

55,315

549

1.0

Educational services

53,831

54,245

(414)

(0.8)

Accommodation and food services

32,982

26,431

6,551

24.8

Finance and insurance

26,834

22,727

4,107

18.1

Manufacturing

25,540

23,714

1,826

7.7

Arts, entertainment, and recreation

24,947

22,043

2,904

13.2

Information

21,681

21,843

(162)

(0.7)

Real estate rental and leasing

20,009

57,113

(37,104)

(65.0)

Professional, scientific, and technical services

19,625

12,490

7,135

57.1

Public administration

6,163

1,448

—

4,715

325.6

Other

68,543

68,363

180

0.3

Total commercial & industrial loans

$568,177

100 %

$564,082

100 %

$4,095

0.7 %

Weighted Average

Asset Quality

Supplemental

- Nonaccrual

(included in

Classified)

Balance

(2) (3)

Average

Loan

Size (4)

Loan to

Value

Debt

Service

Coverage

Pass

Special

Mention

Classified

Non-Owner Occupied Commercial Real

Estate Office (inclusive of Construction):

Class A

$85,054

$10,673

59 %

1.59x

$56,580

$—

$28,474

$22,349

Class B

70,776

3,539

54 %

1.48x

67,003

3,773

—

Class C

10,416

1,488

56 %

1.35x

10,416

—

Medical Office

30,666

6,133

56 %

1.54x

30,666

—

Lab Space

34,095

18,289

103 %

—x

—

27,521

6,574

Total office at Mar 31, 2026 (1)

$231,007

$5,567

64 %

1.29x

$164,665

$31,294

$35,048

$28,923

Total office at Dec 31, 2025

$237,706

$5,611

60 %

1.27x

$173,837

$57,712

$6,157

$—

Mar 31, 2026 vs. Dec 31, 2025

($6,699)

($44)

4 %

0.02x

($9,172)

($26,418)

$28,891

$28,923

(1)

Approximately 65% of the total commercial real estate office balance of $231 million is secured by income producing properties located in suburban areas. Additionally, approximately 59% of the total commercial real estate office balance is scheduled to mature before Mar 31, 2028.

(2)

Balance of commercial real estate office consists of 42 loans as of Mar 31, 2026.

(3)

Does not include $2.8 million of unfunded commitments as of Mar 31, 2026.

(4)

Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans.

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY

(Unaudited; Dollars in thousands)

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Deposits:

Noninterest-bearing demand deposits

$585,415

$595,092

$625,590

($9,677)

(1.6 %)

($40,175)

(6.4 %)

Interest-bearing demand deposits (in-market)

758,524

756,794

654,599

1,730

0.2

103,925

15.9

NOW accounts

690,987

715,114

686,666

(24,127)

(3.4)

4,321

0.6

Money market accounts

1,132,421

1,185,420

1,202,703

(52,999)

(4.5)

(70,282)

(5.8)

Savings accounts

830,855

796,887

630,413

33,968

4.3

200,442

31.8

Time deposits (in-market)

1,166,431

1,220,683

1,213,382

(54,252)

(4.4)

(46,951)

(3.9)

In-market deposits

5,164,633

5,269,990

5,013,353

(105,357)

(2.0)

151,280

3.0

Wholesale brokered time deposits

—

27,228

—

(27,228)

(100.0)

Total deposits

$5,164,633

$5,269,990

$5,040,581

($105,357)

(2.0 %)

$124,052

2.5 %

Mar 31,

2026

Dec 31,

2025

Mar 31, 2026 vs.

Dec 31, 2025

Contingent Liquidity:

Federal Home Loan Bank of Boston

$1,392,049

$1,356,005

$36,044

2.7 %

Federal Reserve Bank of Boston

99,775

104,379

(4,604)

(4.4)

Available cash liquidity (1)

16,088

17,460

(1,372)

(7.9)

Unencumbered securities

528,317

539,830

(11,513)

(2.1)

Total

$2,036,229

$2,017,674

$18,555

0.9 %

(1)

Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs.

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Mar 31, 2026 vs.

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Dec 31,

2025

(bps)

Mar 31,

2025

(bps)

Asset Quality Ratios:

Nonperforming assets to total assets

0.63 %

0.20 %

0.33 %

Nonaccrual loans to total loans

0.81 %

0.25 %

0.42 %

Total past due loans to total loans

0.33 %

0.22 %

0.20 %

ACL on loans to nonaccrual loans

101.70 %

288.14 %

189.85 %

(18,644)

(8,815)

ACL on loans to total loans

0.82 %

0.73 %

0.81 %

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Nonperforming Assets:

Commercial real estate

$28,923

$—

$7,605

$28,923

— %

$21,318

280.3 %

Commercial & industrial

126

—

1,140

126

—

(1,014)

(88.9)

Total commercial

29,049

—

8,745

29,049

—

20,304

232.2

Residential real estate

9,631

11,099

11,102

(1,468)

(13.2)

(1,471)

(13.2)

Home equity

1,757

1,824

1,779

(67)

(3.7)

(22)

(1.2)

Other consumer

—

Total consumer

1,760

1,824

1,779

(64)

(3.5)

(19)

(1.1)

Total nonaccrual loans

40,440

12,923

21,626

27,517

212.9

18,814

87.0

Other real estate owned

—

Total nonperforming assets

$40,440

$12,923

$21,626

$27,517

212.9 %

$18,814

87.0 %

Past Due Loans (30 days or more past due):

Commercial real estate

$6,574

$648

$—

$5,926

914.5 %

$6,574

100.0 %

Commercial & industrial

470

1,146

463

6,614.3

(676)

(59.0)

Total commercial

7,044

655

1,146

6,389

975.4

5,898

514.7

Residential real estate

6,627

9,095

6,439

(2,468)

(27.1)

188

2.9

Home equity

2,746

1,607

2,578

1,139

70.9

168

6.5

Other consumer

19.2

(1)

(3.1)

Total consumer

2,777

1,633

2,610

1,144

70.1

167

6.4

Total past due loans

$16,448

$11,383

$10,195

$5,065

44.5 %

$6,253

61.3 %

Accruing loans 90 days or more past due

$—

— %

$—

— %

Nonaccrual loans included in past due loans

$12,297

$8,348

$7,354

$3,949

47.3 %

$4,943

67.2 %

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Nonaccrual Loan Activity:

Balance at beginning of period

$12,923

$14,016

$23,307

Additions to nonaccrual status

29,064

1,851

2,142

Loans returned to accruing status

(69)

(1,229)

(4)

Loans charged-off

(84)

(87)

(2,522)

Loans transferred to other real estate owned

—

Payments, payoffs, and other changes

(1,394)

(1,628)

(1,297)

Balance at end of period

$40,440

$12,923

$21,626

Allowance for Credit Losses on Loans:

Balance at beginning of period

$37,236

$36,576

$41,960

Provision for credit losses on loans (1)

3,900

500

1,400

Charge-offs

(84)

(87)

(2,522)

Recoveries

247

218

Balance at end of period

$41,126

$37,236

$41,056

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period

$1,140

$1,040

$1,440

Provision for credit losses on unfunded commitments (1)

100

(200)

Balance at end of period (2)

$1,240

$1,140

$1,240

(1)

Included in provision for credit losses in the Consolidated Statements of Income.

(2)

Included in other liabilities in the Consolidated Balance Sheets.

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Q1 2026

Q4 2025

Q1 2025

Provision for Credit Losses:

Provision for credit losses on loans

$3,900

$500

$1,400

$3,400

680.0 %

$2,500

178.6 %

Provision for credit losses on unfunded commitments

100

(200)

—

300

150.0

Provision for credit losses

$4,000

$600

$1,200

$3,400

566.7 %

$2,800

233.3 %

Net Loan Charge-Offs (Recoveries):

Commercial real estate

$—

($118)

$2,250

$118

100.0 %

($2,250)

(100.0 %)

Commercial & industrial

(42)

(111)

62.2

(45)

(1500.0)

Total commercial

(42)

(229)

2,253

187

81.7

(2,295)

(101.9)

Residential real estate

(1)

—

(1)

—

(1)

—

Home equity

(1)

—

Other consumer

(16)

(22.9)

3.8

Total consumer

(16)

(23.2)

3.9

Total

$10

($160)

$2,304

$170

106.3 %

($2,294)

(99.6 %)

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt

income is converted to an FTE basis using the statutory federal income tax rate. Unrealized gains (losses) on available for sale securities, changes

in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and

yield calculations. Nonaccrual loans are included in amounts presented for loans. Interest income attributable to nonaccrual loans is included in

accordance with accounting policy as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

For the Three Months Ended

Mar 31, 2026

Dec 31, 2025

Change

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Assets:

Cash, federal funds sold, and short-term

investments

$101,091

$909

3.65 %

$131,215

$1,291

3.90 %

($30,124)

($382)

(0.25 %)

Mortgage loans held for sale

24,760

375

6.14

38,696

606

6.21

(13,936)

(231)

(0.07)

Taxable debt securities

1,022,612

8,768

3.48

1,051,549

9,100

3.43

(28,937)

(332)

0.05

Nontaxable debt securities

650

4.99

650

4.88

—

0.11

Total securities

1,023,262

8,776

3.48

1,052,199

9,108

3.43

(28,937)

(332)

0.05

FHLB stock

30,566

585

7.76

32,918

792

9.55

(2,352)

(207)

(1.79)

Commercial real estate

2,148,792

28,718

5.42

2,148,052

30,724

5.67

740

(2,006)

(0.25)

Commercial & industrial

571,498

7,921

5.62

561,035

8,292

5.86

10,463

(371)

(0.24)

Total commercial

2,720,290

36,639

5.46

2,709,087

39,016

5.71

11,203

(2,377)

(0.25)

Residential real estate

2,035,597

22,723

4.53

2,062,589

22,829

4.39

(26,992)

(106)

0.14

Home equity

316,660

4,931

6.32

313,759

5,194

6.57

2,901

(263)

(0.25)

Other

16,589

215

5.26

16,764

216

5.11

(175)

(1)

0.15

Total consumer

333,249

5,146

6.26

330,523

5,410

6.49

2,726

(264)

(0.23)

Total loans

5,089,136

64,508

5.14

5,102,199

67,255

5.23

(13,063)

(2,747)

(0.09)

Total interest-earning assets

6,268,815

75,153

4.86

6,357,227

79,052

4.93

(88,412)

(3,899)

(0.07)

Noninterest-earning assets

297,871

290,006

7,865

Total assets

$6,566,686

$6,647,233

($80,547)

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits (in-market)

$748,233

$5,889

3.19 %

$734,617

$6,375

3.44 %

$13,616

($486)

(0.25 %)

NOW accounts

676,240

259

0.16

671,840

348

0.21

4,400

(89)

(0.05)

Money market accounts

1,162,609

7,788

2.72

1,198,818

8,846

2.93

(36,209)

(1,058)

(0.21)

Savings accounts

810,040

3,418

1.71

757,843

3,456

1.81

52,197

(38)

(0.10)

Time deposits (in-market)

1,190,414

10,016

3.41

1,225,779

11,035

3.57

(35,365)

(1,019)

(0.16)

Interest-bearing in-market deposits

4,587,536

27,370

2.42

4,588,897

30,060

2.60

(1,361)

(2,690)

(0.18)

Wholesale brokered time deposits

—

Total interest-bearing deposits

4,587,536

27,370

2.42

4,588,897

30,060

2.60

(1,361)

(2,690)

(0.18)

FHLB advances

660,667

6,777

4.16

708,174

7,696

4.31

(47,507)

(919)

(0.15)

Junior subordinated debentures

22,681

310

5.54

22,681

333

5.82

—

(23)

(0.28)

Total interest-bearing liabilities

5,270,884

34,457

2.65

5,319,752

38,089

2.84

(48,868)

(3,632)

(0.19)

Noninterest-bearing demand deposits

604,302

647,274

(42,972)

Other liabilities

138,126

138,742

(616)

Shareholders' equity

553,374

541,465

11,909

Total liabilities and shareholders' equity

$6,566,686

$6,647,233

($80,547)

Net interest income (FTE)

$40,696

$40,963

($267)

Interest rate spread

2.21 %

2.09 %

0.12 %

Net interest margin

2.63 %

2.56 %

0.07 %

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Three Months Ended

Mar 31, 2026

Dec 31, 2025

Change

Commercial loans

$168

$214

($46)

Nontaxable debt securities

—

Total

$169

$214

($45)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)

The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, and adjusted net income:

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Q1 2026

Q4 2025

Q1 2025

Adjusted Noninterest Income:

Noninterest income, as reported

$17,303

$18,503

$22,643

($1,200)

(6.5 %)

($5,340)

(23.6 %)

Less adjustments:

Gain on sale of bank-owned properties, net

—

6,994

—

(6,994)

(100.0)

Adjusted noninterest income (non-GAAP)

$17,303

$18,503

$15,649

($1,200)

(6.5 %)

$1,654

10.6 %

Adjusted Noninterest Expense:

Noninterest expense, as reported

$37,765

$37,983

$42,196

($218)

(0.6 %)

($4,431)

(10.5 %)

Less adjustments:

Pension plan settlement charge

—

6,436

—

(6,436)

(100.0)

Adjusted noninterest expense (non-GAAP)

$37,765

$37,983

$35,760

($218)

(0.6 %)

$2,005

5.6 %

Adjusted Income Before Income Taxes:

Income before income taxes

$16,063

$20,668

$15,669

($4,605)

(22.3 %)

$394

2.5 %

Less: total adjustments, pre-tax

—

558

—

(558)

(100.0)

Adjusted income before income taxes (non-GAAP)

$16,063

$20,668

$15,111

($4,605)

(22.3 %)

$952

6.3 %

Adjusted Income Tax Expense:

Income tax expense, as reported

$3,463

$4,694

$3,490

($1,231)

(26.2 %)

($27)

(0.8 %)

Less: tax on total adjustments

—

141

—

(141)

(100.0)

Adjusted income tax expense (non-GAAP)

$3,463

$4,694

$3,349

($1,231)

(26.2 %)

$114

3.4 %

Adjusted Net Income:

Net income, as reported

$12,600

$15,974

$12,179

($3,374)

(21.1 %)

$421

3.5 %

Less: total adjustments, after-tax

—

417

—

(417)

(100.0)

Adjusted net income (non-GAAP)

$12,600

$15,974

$11,762

($3,374)

(21.1 %)

$838

7.1 %

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following table presents adjusted diluted earnings per common share and adjusted efficiency ratio:

Q1 2026

Q4 2025

Q1 2025

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Adjusted Diluted Earnings per Common Share:

Diluted earnings per common share, as reported (1)

$0.66

$0.83

$0.63

($0.17)

(20.5 %)

$0.03

4.8 %

Less: impact of total adjustments

—

0.02

—

(0.02)

(100.0)

Adjusted diluted earnings per common share

(non-GAAP) (2)

$0.66

$0.83

$0.61

($0.17)

(20.5 %)

$0.05

8.2 %

Adjusted Efficiency Ratio:

Efficiency ratio, as reported (3)

65.3 %

64.1 %

71.4 %

120 bps

(610) bps

Less: impact of total adjustments

—

2.7

— bps

(270) bps

Adjusted efficiency ratio (non-GAAP) (4)

65.3 %

64.1 %

68.7 %

120 bps

(340) bps

(1)

Net income divided by weighted average diluted common and potential shares outstanding.

(2)

Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

(3)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

(4)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above.

The following table presents adjusted return on average assets and return on average tangible assets:

Q1 2026

Q4 2025

Q1 2025

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Adjusted Return on Average Assets:

Net income, as reported

$12,600

$15,974

$12,179

($3,374)

(21.1 %)

$421

3.5 %

Less: total adjustments, after-tax

—

417

—

(417)

(100.0)

Adjusted net income (non-GAAP)

$12,600

$15,974

$11,762

($3,374)

(21.1 %)

$838

7.1 %

Total average assets, as reported

$6,566,686

$6,647,233

$6,765,057

($80,547)

(1.2 %)

($198,371)

(2.9 %)

Return on average assets (1)

0.78 %

0.95 %

0.73 %

(17) bps

5 bps

Adjusted return on average assets (non-GAAP) (2)

0.78 %

0.95 %

0.71 %

(17) bps

7 bps

Return on Average Tangible Assets:

Adjusted net income (non-GAAP)

$12,600

$15,974

$11,762

($3,374)

(21.1 %)

$838

7.1 %

Total average assets, as reported

$6,566,686

$6,647,233

$6,765,057

($80,547)

(1.2 %)

($198,371)

(2.9 %)

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

4,224

4,378

2,781

(154)

(3.5)

1,443

51.9

Total average tangible assets

$6,498,553

$6,578,946

$6,698,367

($80,393)

(1.2 %)

($199,814)

(3.0 %)

Return on average assets (1)

0.78 %

0.95 %

0.73 %

(17) bps

5 bps

Return on average tangible assets (non-GAAP) (3)

0.79 %

0.96 %

0.71 %

(17) bps

8 bps

(1)

Net income divided by total average assets.

(2)

Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.

(3)

Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following table presents adjusted return on average equity and return on average tangible equity:

Q1 2026

Q4 2025

Q1 2025

Q1 2026 vs. Q4 2025

Q1 2026 vs. Q1 2025

Adjusted Return on Average Equity:

Net income, as reported

$12,600

$15,974

$12,179

($3,374)

(21.1 %)

$421

3.5 %

Less: total adjustments, after-tax

—

417

—

(417)

(100.0)

Adjusted net income (non-GAAP)

$12,600

$15,974

$11,762

($3,374)

(21.1 %)

$838

7.1 %

Total average equity, as reported

$553,374

$541,465

$513,048

$11,909

2.2 %

$40,326

7.9 %

Return on average equity (1)

9.23 %

11.70 %

9.63 %

(247) bps

(40) bps

Adjusted return on average equity

(non-GAAP) (2)

9.23 %

11.70 %

9.30 %

(247) bps

(7) bps

Return on Average Tangible Equity:

Adjusted net income (non-GAAP)

$12,600

$15,974

$11,762

($3,374)

(21.1 %)

$838

7.1 %

Total average equity, as reported

$553,374

$541,465

$513,048

$11,909

2.2 %

$40,326

7.9 %

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

4,224

4,378

2,781

(154)

(3.5)

1,443

51.9

Total average tangible equity (non-GAAP)

$485,241

$473,178

$446,358

$12,063

2.5 %

$38,883

8.7 %

Return on average equity (1)

9.23 %

11.70 %

9.63 %

(247) bps

(40) bps

Return on average tangible equity

(non-GAAP) (3)

10.53 %

13.39 %

10.69 %

(286) bps

(16) bps

(1)

Net income divided by total average equity.

(2)

Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

(3)

Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following table presents tangible book value per share and the ratio of tangible equity to tangible assets:

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Mar 31, 2026 vs.

Dec 31, 2025

Mar 31, 2026 vs.

Mar 31, 2025

Tangible Book Value per Share:

Total shareholders' equity, as reported

$546,773

$543,584

$521,680

$3,189

0.6 %

$25,093

4.8 %

Less end of period balances of:

Goodwill

63,909

—

— %

—

— %

Identifiable intangible assets, net

4,148

4,303

2,682

(155)

(3.6) %

1,466

54.7 %

Total tangible shareholders' equity (non-GAAP)

$478,716

$475,372

$455,089

$3,344

0.7 %

$23,627

5.2 %

Shares outstanding, as reported

19,041

19,035

19,276

— %

(235)

(1.2 %)

Book value per share

$28.72

$28.56

$27.06

$0.16

0.6 %

$1.66

6.1 %

Tangible book value per share (non-GAAP)

$25.14

$24.97

$23.61

$0.17

0.7 %

$1.53

6.5 %

Tangible Equity to Tangible Assets:

Total tangible shareholders' equity

$478,716

$475,372

$455,089

$3,344

0.7 %

$23,627

5.2 %

Total assets, as reported

$6,459,196

$6,621,694

$6,586,015

($162,498)

(2.5 %)

($126,819)

(1.9 %)

Less end of period balances of:

Goodwill

63,909

—

— %

—

— %

Identifiable intangible assets, net

4,148

4,303

2,682

(155)

(3.6 %)

1,466

54.7 %

Total tangible assets (non-GAAP)

$6,391,139

$6,553,482

$6,519,424

($162,343)

(2.5 %)

($128,285)

(2.0 %)

Equity to assets

8.47 %

8.21 %

7.92 %

26 bps

55 bps

Tangible equity to tangible assets (non-GAAP)

7.49 %

7.25 %

6.98 %

24 bps

51 bps

Category: Earnings

SOURCE Washington Trust Bancorp, Inc.